Referendum on Electric Rates Will Appear on Ballot

If you vote in the March 20 primary election, you’ll get to help decide whether village leaders can try to save you an estimated 15-20 percent off your electric bill. 

On Monday, the Village Board unanimously agreed to take advantage of a new state law that allows municipalities to negotiate electricity rates for their residents and small businesses. Voters will have to approve it by referendum in March, and if they do, the village will be able to seek out cheaper rates from companies other than ComEd/Exelon.

Village residents currently get their energy from Exelon, as delivered by ComEd. (Since 2003, ComEd has been an energy delivery company only. Parent company Exelon generates the electricity ComEd delivers.)

Montgomery would work through the Northern Illinois Municipal Electric Collaborative, a group of 140 government entities that negotiates with electricity companies. The village has been working with NIMEC since 1997, to obtain lower rates for its water pumping and street lighting energy.

David Hoover, executive director of NIMEC, was on hand Monday to answer questions. He compared the process to the way the village negotiates its garbage contract, finding the best rate for the residents. He said 19 other communities, including North Aurora and Sugar Grove, have passed similar referendums, and the average rates have been 20-30 percent lower than those offered by Exelon.

NIMEC would negotiate either a one-year, two-year or three-year deal for Montgomery. ComEd would still handle the billing and servicing, so residents would see no change in their bills, except for a lower rate. And Hoover said that if Exelon still offers the best price, the village can stick with them.

Residents would be automatically included in the group, but would be able to opt out of the negotiated rate and stay with ComEd if they so chose, Hoover said. However, if residents have already signed a deal with another energy provider, NIMEC would exclude them from the new negotiated rate.

“We would respect the decision they have made,” Hoover said. “They would have to join. We do not force ourselves on that group.”

Trustee Andy Kazcmarek asked whether ComEd would try to make up lost revenue with an increase in its delivery charge. Hoover said they would not lose any revenue, since they do not generate electricity, merely deliver it, and any increase in their rate would need to go through the Illinois Commerce Commission or the state.

“ComEd has stated publicly and in conversations with me that they are indifferent to this idea,” he said.

The village of Oswego is considering a similar referendum. Montgomery’s will appear on the March 20 ballot, in this form:

“Shall the village of Montgomery have the authority to arrange for the supply of electricity for its residential and small commercial customers who have not opted out of such program?”